1988 (3) TMI 266

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....or the Respondents. [Order (Oral)] :-This appeal is directed against the order of the Collector of Central Excise (Appeals), Madras, dated 30-4-1987 confirming the order of the Assistant Collector of Central Excise, Bangalore, dated 21-11-1986 and rejecting the appellant's claim to avail MODVAT credit under the transitional provisions under Rule 57H of the Central Excise Rules, 1944, hereina....

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....on 3-2-1986 the appellant should be held entitled to take MODVAT credit under the transitional provisions. 3. Heard Shri Bhatia, the learned Senior D.R. 4. The short question that arises for my consideration in the appeal is with reference to the scope and amplitude of Rule 57H(2) and the interpretation thereof. For the purpose of convenience let me extract the relevant rule. Rule 57H, sub-r....

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....on prior to 1st March, 1986 would be allowable even for a period earlier than 31st January, 1986. In the present case it is not disputed before me that the chemicals imported by the appellant have suffered countervailing duty and countervailing duty is also admissible for MODVAT credit in terms of Rule 57A of the Rules. It is also not disputed before me that chemicals imported are inputs used in t....

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....he duty paid inputs lying in the stock of a manufacturer as on 1st March, 1986 under Rule 57H(1)(a) of the Rules and there is no reason as to why the inputs viz. chemicals which are indisputably used in the manufacture of Resins should to excluded from the purview of the MODVAT scheme under the transitional provisions. To a specific query I am informed that MODVAT credit is available in respect of....